Unit 8: SAP S/4HANA fueling

the Digital Transformation

SAP S/4HANA fueling the Digital Transformation
Radical Simplification Is Needed to Unlock the Potential

Drive business
28% innovation

Drive business
innovation

Keep the Consumption

72% lights on For immediate business impact

User Experience
Engage front line employees/customers Keep the
IT Environment lights on
Collapse redundant infrastructure layers
Forrester IT Survey, 2013

70% 50% 40% 90%

say complexity is are unsure who worry whether say business
increasing costs is accountable their organization is growing
Bain 2005 Survey Economist 2010 can keep pace more complex
McKinsey Study 2013 Economist 2010

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SAP S/4HANA fueling the Digital Transformation
The Building Blocks of Digital Transformation

Cloud Data Mobile Networks

Simplicity Predictive Insights Adaptability for the Hyperconnectivity

21st Century Digital communities
Time to New Product
Workforce
Value Strategies Social Sollaboration
Everything doable
Speed to Customer Collaborating beyond
from Anywhere
Innovation Engagement Enterprise
Boundaries

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SAP S/4HANA fueling the Digital Transformation
What companies need to achieve

based on disruptive
technology to gain
Cloud Data
higher competitiveness
Business
Outcome

Networks Mobile

Business Outcome and Technology-Driven

Competitiveness Disruption
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SAP S/4HANA fueling the Digital Transformation
The Innovation Adoption Model

Transformational Business Business Business Business

Level Impact Processes Model Outcome

Business Innovation NEW NEW

NEW BUSINESS
New customers
MODELS New markets

Improved Optimize products NEW OLD

PRODUCTS Offer new products/services

Improve single processes NEW OLD

Improved
Replace single processes
PROCESSES Change end to end processes
Transparency OLD OLD
Improved Decision support
DECISIONS Decision automation

Technical
Velocity
SOLUTION

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SAP S/4HANA fueling the Digital Transformation
The Innovation Adoption Model

from Push
Static
Aggregation

FI Postings Customers Products Profit Centers Suppliers

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SAP S/4HANA fueling the Digital Transformation
The Innovation Adoption Model

to Pull
On-the-fly
Aggregation

Lowest Level
of Granularity
FI Postings Customers Products Profit Centers Suppliers

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SAP S/4HANA fueling the Digital Transformation
The Innovation Adoption Model

Business Processes
Transactional Data
External Data
Business Networks
Structured and Unstructured

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SAP S/4HANA fueling the Digital Transformation
Result: Systems of Engagements and System of Records combined

Systems of Engagement Effectiveness - Do the right things

focus on business tasks

Engage Business collaborate and communicate
Workers - middle of
Connecting people in real time
the organization
Leverage Structured and Unstructured Data

Systems of Records Efficiency - Do the things right

Information Highway
Support Frontline
Single Source of Truth
Workers Keep
business running Data Processing of structured data
Used within company boundaries

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SAP S/4HANA fueling the Digital Transformation
Examples for Business Benefits

>65% Service improves 10x

Faster financial close processes Faster Scenario Running in
business processes
Material Related Planning (MRP)

>50% Content enhances 5x

Faster foreign currency revaluation Data Storage Reduction in
business processes
Material Related Planning (MRP)

1,000x Content changes Increased throughput with

Faster reporting Optimization of Inventory
(from 15 minutes to 1 second) business processes Management and Valuation

Simple Finance Internet of Services Simple Logistics

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 SAP S/4HANA fueling the Digital Transformation
Examples for Simple Logistics and Manufacturing

Increased user productivity Real-time decision support

Intuitivepersonalization Provides pre-evaluated
allows tailoring of the app solution proposals
to individual work-styles
Enablesthe simulation of
KPIsare constantly every proposal before applying
recalculated and refreshed it
Flexiblerules (shortage Allows
manual adjustment of
definitions) proposals
1-click execution of a solution

Improved customer service levels Minimized exception handling Dramatically simplified data model

Complex applications The MRP All aggregates and

(ATP, Backorder Planner gets history tables (24 in
Processing) are the latest total) dropped
executed directly in information in Smaller data footprint,
HANA real-time no locking
Always up-to-date view Intuitive Process & data
on demand-/ supply- graphics for redundancies
situation across all faster insights eliminated
BOM levels High speed evaluations

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SAP S/4HANA fueling the Digital Transformation
Customer Co-Innovation Program: Simplification Involves a Paradigm Shift

Engagement
Influence

Level 3 Co-Innovation activities are

Design* designed to meet customer
Level 2 bandwidth and priorities
Review*
Level 1 End-User and Line of Business
Advise
- Professionals are a pre-
requisite for success
Time commitment / influence
* = Internal & external customers, partner, prospects and influencers Time
Commitment

Invitation to customers, partners and influencers to contribute:

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Discover

Further information:
Homepage: sap.com/S4HANA
Next openSAP course: SAP Business Suite 4 SAP HANA Deep Dive
Co-Innovation: S4HANA-CoInnovation@sap.com
Thank you

Contact information:

open@sap.com
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